registration (strata titles) act 2009 presenter: ainsworth...
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REGISTRATION (STRATA TITLES) ACT 2009
Presenter: Ainsworth Norton
Girls Guide Auditorium
March 17, 2016
Registration (Strata Titles) Act 1969 had structural weaknesses which lead to its amendment in 2009
did not facilitate the effective running of strata corporations as established
Failure to have general meetings
Failure to elect responsible officers
Approve by-laws
Failure to enforce maintenance collections
Established on January 1 - amendment of the
1969 Act
Monitor, regulate and supervise strata
corporations
Purpose of the 09’ Amendments
Establish reporting mechanisms by the corporations
to the Commission
Establish the Strata Appeals Tribunal to hear
matters by a proprietor aggrieved by a decision of the
Corporation or Commission
Purpose of the 09’ Amendments (Cont’d)
Give the Commission the mandate to enforce by-laws
Establish dispute resolution mechanisms accessible
to both proprietor and corporation
The Primary Assessment Tools
of the Commission
The level of compliance in the filing of
annual returns
Effectiveness of granting POS certificates
Audit of Strata Corporations
Enforcement of Bylaws
Requirement for Insurance
The Primary Assessment Tools of the
Commission (Cont’d)
The level of compliance in the filing of
annual returns
1373 1331
1277
179 205 108 122 125 84
0
200
400
600
800
1000
1200
1400
1600
Apr - Dec 2014 2013-2014 2012-2013
Annual Returns Submissions
Registered previous yr
Total Submissions
Current YearSubmissions
The Primary Assessment Tools
of the Commission (cont’d)
The effectiveness of the granting of Power
of Sale certificates
The audit of strata corporations
The Primary Assessment Tools of
the Commission (cont’d) - Audits
50%
75%
75%
50%
38%
38%
0%
50%
13%
88%
13%
38%
13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Failure to pay fees to the Commission
Failure to file Annual Returns
Failure to Convene AGM & Issue Proper Notice
Failure to prepare budget for approval
Failure to compute contributions based on unit entitlement
Failure to insure corporation or ratify resolution
Unable to verify quorum
Failure to prepare bank reconcilliation
Unable to verify eligibility to vote
Physical breaches
failure to provide resolution to rent common area
General accounting failures
Failure to prepare PM/personnel contract
Common Audit Findings 2014/2015
Audits - Major Failures of Strata
Corporations
Failure to file annual returns – Section 4 (7)
Failure to convene AGM and issue proper notice
- First Schedule No 5 – 8A
Failure to prepare budget for approval – Section
4(7)(b)(iii)
Major Failures of Strata Corporations
(Cont’d)
Failure to compute contributions on unit
entitlement – Section 7 (4)
Failure to insure corporation or to ratify
resolution not to insure – Section 5(1)(a)
Major Failures of Strata Corporations
(Cont’d)
Failure to verify quorum – First Schedule No. 10
Failure to verify eligibility to vote – First
Schedule No 30
Physical breaches
The Primary Assessment Tools
of the Commission (cont’d)
Requirement for insurance coverage
Enforcement of by-laws
Inspections - Enforcement of By-laws
2015-2016
69%
41%
24%
7%
9%
9%
14%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Air conditioning units mounted in common area
No receptacle for receipt of mail
Changes to Windows
Rear of strata lot enclosed
Piping for cooking gas in common area
Change of external doors
Ad Hoc painting of external walls
Inspection findings 2015/2016
Enforcement of By-laws 2015-2016
(Cont’d)
Sixty-nine percent (69%) of those inspected had
air-conditioning units extending into the common
area.
Forty-one percent (41%) of the corporations were
without a mail receptacle for the receipt of mail.
Twenty-four percent (24%) had changes to the
windows.
Enforcement of By-laws 2015-2016
(Cont’d)
Seven percent (7%) enclosed the rear of the strata
lot.
Nine percent (9%) had cooking gas cylinders for
individual strata lots, located in common areas
Nine percent (9%) changed doors
Fourteen percent (14%) had ad hoc painting to
common area walls
Negative occurrences linked to ineffective management of strata corporations
Limitations of the Act in addressing some of the issues
The proposed amendments to strengthen the development/management structure
Need for Amendment
Define actions aimed at fostering increased statutory compliance
Address initial structural deficiencies
Need for Amendment (Cont’d)
Proposed Amendments
The Act is to be amended to:-
1. Facilitate phased development of strata corporations
2. Amendment to calling an Extraordinary General Meeting
3. Institute penalty for not filing Annual Returns
4. Institute penalty for late Annual Registration
Proposed Amendments (Cont’d)
5. Place limitation on party to appeal a decision of the
Corporation
6. Provide for an independent Secretariat for SAT
7. Provide for electronic attendance at meetings
8. Define Voting Rights
9. Establish guidelines for entering to carry out works
10. Provide for a Register of Owners by strata corporations
Proposed Amendments (Cont’d)
11. Applicable interest on arrears
12. Establish eligibility to sit on executive committee
13. Election of a Chairman
14. Restorative actions for breach of by-laws
Proposed Amendments (Cont’d)
Breach of By-Laws
I. Order of Reinstatement
II. Order to Remedy Breach of By-law
III. Permission for alteration in common area
Proposed Amendments (Cont’d)
15. Service of documents/summons on the PSP
16. Payment of Annual Fees
COMMENTS
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